Commercial Auto Insurance for HVAC Contractors in Michigan: Everything You Need to Know
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If you're an HVAC contractor in Michigan, your business relies on vehicles to keep jobs moving. Whether you're hauling tools across town or responding to a no-heat emergency in January, your wheels are your livelihood. But are you fully protected on the road?
In this guide, we break down what HVAC contractors in Michigan need to know about commercial auto insurance, including real premium examples, state requirements, and the coverage gaps that catch too many contractors off guard.
What Types of Vehicles Qualify for Commercial Auto Insurance?
HVAC businesses in Michigan typically use a range of vehicles, including:
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Cargo vans (e.g., Ford Transit, Mercedes Sprinter)
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Pickup trucks with utility beds or ladder racks
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Box trucks for larger operations
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Service utility vehicles with built-in tool compartments
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Fleet vehicles used by techs and apprentices
If the vehicle is titled in the company name, used to transport tools or equipment, or driven by employees for work purposes—it likely requires commercial auto insurance.
Pro Tip: Even if you personally own the vehicle, using it for work can void your personal policy in a claim. Play it safe with the right commercial policy.
Common Claims HVAC Contractors Face
Commercial auto claims for HVAC pros often include:
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Rear-end collisions during rush hour service calls
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Vehicle theft (especially tools stolen from unlocked vans)
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Backup accidents in residential driveways
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Damage to client property when a ladder or equipment falls off
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Employee accidents in company vehicles
These aren’t rare. In fact, most HVAC shops file at least one auto-related claim every few years.
Coverage Gaps Most Contractors Overlook
Here are the most common gaps we see with HVAC contractors:
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Personal Auto Policies on Work Trucks: These often exclude business use, leaving you exposed.
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No Hired & Non-Owned Auto Coverage: What happens if your employee drives their personal vehicle for a supply run? You could be liable.
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Uninsured/Underinsured Motorist Coverage: This is crucial if your tech gets hit by someone with little or no coverage.
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Lack of Inland Marine (Tools & Equipment) Coverage: Your commercial auto policy doesn’t automatically cover tools stolen from a vehicle.
- Customization (including vehicle signs and wraps): Any after market parts or equipment installed on the vehicle that changes the value should be listed. That includes your branding and vehicle wraps which can be a few extra thousand dollars!
Michigan's State-Specific Insurance Requirements
In Michigan, commercial auto insurance must comply with state laws, which include:
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Minimum liability limits of $50,000 per person / $100,000 per accident but most contractors carry at least $1 million (The policy will default to $250,000/$500,000 (or $510,000 for commercial auto policies) if the policyholder does not make a choice.)
- *Trucking companies, trucks and motor carriers engaged in commercial transport of property must have minimum levels of financial responsibility of $750,000.
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No-Fault (PIP) requirements — these have changed recently, so be sure you're up to date.
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Proof of coverage is mandatory for commercial registrations.
Keep in mind: Michigan’s auto insurance system has unique nuances. Choosing the wrong policy type can lead to denied claims or uncovered losses.
Real Premium Examples for HVAC Contractors in Michigan
Here are some real-world premium examples from HVAC businesses we work with at TOMIA247:
| Company Size |
Vehicle Type |
Annual Premium |
| Solo Owner-Operator |
2020 Ford Transit Van |
$1,600/year |
| 3-Tech Team |
Mix of 2 vans + 1 pickup |
$4,800/year |
| 5-Vehicle Fleet |
Vans & Box Truck |
$7,900/year |
| With Tools Covered |
Add $300–$600/year |
— |
**These are just examples. Your premium depends on driving records, vehicle value, coverages, and business use.
Optional Add-Ons HVAC Contractors Should Consider
Want full peace of mind? Consider these add-ons:
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Inland Marine Coverage (aka Tools & Equipment Coverage)
Protects tools stolen from your van or jobsite.
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Hired & Non-Owned Auto
Covers employee-owned or rented vehicles used for work.
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Roadside Assistance
Helps when your service van breaks down mid-job.
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Rental Reimbursement
Covers rental costs if a work truck is out of commission.
FAQs HVAC Contractors Ask About Commercial Auto Insurance
Do I need commercial auto insurance if I’m a one-person HVAC shop?
Yes. If your vehicle is used for work—even part-time—you’re at risk with just personal coverage.
What if my tools are stolen from my truck?
Unless you have a separate tools & equipment (inland marine) policy, your commercial auto won't cover tool theft.
Can I drive a personal vehicle for work and still be covered?
Not without hired and non-owned auto coverage on your commercial policy—or you risk a major coverage gap.
Is Michigan’s no-fault law different for commercial vehicles?
Yes, and it’s complex. We’ll help you choose the right PIP options based on your business and risk tolerance.
Will adding my employees as drivers raise my premiums?
It depends on their driving records. A clean record helps—but you’re better safe than sorry by listing them properly.
If you're ready to start vetting your insurance options, we’re here to help - contact us today or request a quote and we’ll walk you through what makes our agency different.
If you’re looking for and insurance agent in Michigan. You may also like to take a look at these great resources for insurance:
Now you’re either currently investing a lot of money into your insurance policies or getting closer to making this decision. We don’t want you to make any mistakes with a decision of this magnitude. So instead of basing this huge decision on a quoted number on the computer screen or a piece of paper – we thought you’d like to know that you can work with one of the knowledge members of our team so that you can become well educated on your insurance before buying.
For more insurance and risk management guidance or questions about your policy's coverage limits, contact us today.
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About the Author
Tyler Bartosh (Connect with me on LinkedIn)
A third-generation insurance agency owner and agent since 2007, Tyler Bartosh is the consummate “insurance geek,” using his passion for business, knowledge of insurance, and advocacy for clients to help serve as the expert buyer of insurance. He helps businesses implement risk management strategies that save both time and money, so those resources can be put towards other initiatives in your company.
Away from his career in insurance, he enjoys spending time with his family & friends, volunteering throughout the community, golf, fishing, snowboarding, hiking and virtually anything outdoors and traveling to see live music. Tyler has a wife Emily (who is also an underwriter in the insurance industry), their dog Lucy and a baby girl, Sophie Constance.
About Top O' Michigan Insurance Solutions:
At Top O’ Michigan Insurance Solutions, we pride ourselves on using our skills to provide clients with competitive pricing, stability and understanding, and peace of mind. With seven locations throughout Michigan and 24/7 client access, our team is your 'expert buyer' of insurance for home, auto, farm, boat, motorcycle, business owners, workers compensation, bonds, life and health, employee benefits and more.
We will provide unparalleled and caring service to our clients through our knowledgeable staff and give back to our employees, agency, industry and our communities. Part of our mission is to give back to the Michigan communities we serve. This is something we take action on through We Care and you can learn more about our community outreach at TOMIA247.com/WeCare.
National Resources, Locally Sourced.
Disclaimer: This Blog/Web Site does not provide insurance or legal advice. This site is for educational purposes only as well as to provide you with general information and a general understanding of insurance, not to provide specific legal advice or specific contract advice. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute a client relationship.
The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.
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